> Small warehouses in big cities still cost a lot of money. Land is expensive in big cities, and even small warehouses are pretty large. They don't have to be

> Small warehouses in big cities still cost a lot of money. Land is expensive in big cities, and even small warehouses are pretty large. They don't have to be downtown. Regardless, you're thinking about this the wrong way. As a service that must serve everyone and deliver everything instead of as an opportunistic service, which is a smarter way to approach the problem from a business perspective. Amazon already has warehouses, fulfillment centers, in several major metro areas. Let me state that again, because it's hugely important. Amazon already has warehouses in some cities. They have to have their FCs somewhere, and the places where they are, like Seattle, already have a comparative advantage when it comes to fulfillment of commonly stocked items. This changes the problem dramatically. It transforms it from: buy high priced land in major cities, build FCs there, set up drone operations; to: set up drone operations in a few cities where you already have large, well stocked warehouses, and then pilot the program opportunistically in those cities. Then expand the program to other cities depending on how successful and profitable the pilot program turns out to be. This is business 101, you leverage what you've already got to mitigate risk and reduce development and acquisition costs.